As the gold in the gravel bars of the lower Fraser declined, prospectors followed the river north, eventually reaching the rich gold-bearing creeks of the Cariboo. In 1861, a party led by William "Dutch Bill" Dietz, found gold in a stream they named Williams Creek in Dutch Bill's honor.

At first, most of the mining activity was confined to the portion of the creek above the canyon where gold was found at a shallow depth. Amid the clutter of flumes and sluice boxes, the town of Richfield sprang up in 1861.

William "Billy" Barker was an Englishman who arrived in Victoria in 1858. After two unsuccessful attempts to find gold above the canyon, he decided to try his luck downstream. Forming the Barker Company with seven other Englishmen in 1862, Barker sank a shaft below the canyon at Williams Creek where the depth of the overburden made people believe that gold would never be found. At a depth of forty feet, Barker and company struck pay dirt.

News of the Barker strike spread rapidly. Soon, the town of Barkerville, named after Billy Barker, was born.

Barkerville grew alongside the Barker claims. Rude cabins and tents of the miners made way for more permanent log and frame buildings which housed a variety of businesses.

Several stage companies ran from Barkerville. The most famous and longest was established by F.J. Barnard. His B.X. Express, later called the B.C. Express, ran all the way from Barkerville to Yale.

The social life in Barkerville was exciting. Hurdy Gurdy dancing girls charged the miners a dollar a dance. Gambling and drinking were accepted and horse races and prize fights were common. There were also church services, the Cariboo Literary society and the Theatre Royal.

On September 16, 1868, Barkerville was engulfed by fire which spread through all the dry-as-tinder wooden buildings. Within two and a half hours, only a handful of buildings were left standing. Winter was approaching, so they had to rebuild fast.